Transcript Kreitner - NMHU International Business Consulting

Foundations of
Motivation
Chapter 8
McGraw-Hill/Irwin
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
© 2008The McGraw-Hill Companies, Inc. All rights reserved.
Ch. 8 Learning Objectives
1. Contrast Maslow’s, Alderfer’s, and McClelland’s need
theories.
2. Explain the practical significance of Herzberg’s
distinction between motivators and hygiene factors.
3. Discuss the role of perceived inequity in employee
motivation.
4. Explain the differences among distributive, procedural,
and interactional justice.
5. Describe the practical lessons derived from equity
theory.
8-2
Ch. 8 Learning Objectives
6. Explain Vroom’s expectancy theory and review its
practical implications., racial and ethnic, and
disability stereotypes.
7. Explain how goal setting motivates an individual
and review the four practical lessons from goalsetting research.
8. Review the mechanistic, motivational, biological,
and perceptual-motor approaches to job design.
8-3
Motivation
Motivation
psychological processes
that arouse and direct
goal-directed behavior
Does high motivation
mean better job
performance?
• A=Yes, B=No
Is money the only
motivator?
8-4
Theories of Motivation
Content Theories
• Identify internal factors
influencing motivation
Maslow’s Need
Hierarchy
Alderfer’s ERG
McClelland’s Need
Herzberg’s MotivatorHygiene
Process Theories
• Identify the process
by which internal
factors and
cognitions influence
motivation
Adam’s Equity
Vroom’s
Expectancy
Goal Setting Theory
8-5
Motivation Theories
8-6
Maslow’s Need Hierarchy Theory
How does the
theory work?
What research
support does this
theory have?
What are the
managerial
implications of this
theory?
8-7
Employee’s Varying Needs
8-8
Alderfer’s ERG Theory
Existence: Desire for
physiological and
materialistic well-being
Relatedness: Desire to
have meaningful
relationships with
significant others
Growth: Desire to
grow and use one’s
abilities to their fullest
potential
How does this theory
work?
What is the research
support?
What are the
managerial
implications?
8-9
McClelland’s Need Theory
The Need for
Achievement
• Desire to accomplish
something difficult
The Need for
Affiliation
• Desire to spend time
in social relationships
and activities
The Need for Power
• Desire to influence,
coach, teach, or
encourage others to
achieve
8-10
McClelland’s Needs Theory in Practice
1. Is high need for power good or bad?
A= Good, B=Bad, C= It depends
2. What is the most important need for leaders?
a. Achievement
b. Affiliation
c. Power
3. What is the least important?
a. Achievement
b. Affiliation
c. Power
8-11
Test Your Knowledge
A manager made the following work assignments
based on her perception of her employee’s needs.
Sam – responsible for orienting new employees to
the team; Rex – responsible for operations of an
entire division; Jose – researcher in R & D. Which of
the following set of pairs below is probably true?
a. Sam- power; Rex- achievement; Jose- affiliation;
b. Sam – affiliation; Rex- power; Jose – achievement
c. Sam – achievement, Rex – affiliation, Jose – power
d. Sam – achievement; Rex – power; Jose - affiliation
8-12
Herzberg’s Motivator-Hygiene Model
Hygiene Factors job characteristics associated with
job dissatisfaction
• Salary
• Supervisory relations
• Working conditions
Motivators job characteristics associated with job
satisfaction
• Achievement
• Recognition
• Responsibility
8-13
Herzberg’s Motivator-Hygiene Model
Basic premise: Job satisfaction is not a
continuum from satisfied to dissatisfied
Rather, there are two continuums
•No Satisfaction …… Satisfaction
•Dissatisfaction ……No dissatisfaction
8-14
Herzberg’s Motivator-Hygiene
Model
8-15
Comparison of Content Theories of
Motivation
Needs Hierarchy
Theory
SelfActualization
ERG
Theory
Growth
Esteem
Belongingness
Relatedness
McClelland’s
Motivator--Hygiene
Learned Needs
Theory
Need for
Achievement
Need for
Power
Motivators
Need for
Affiliation
Hygienes
Safety
Existence
Physiological
8-16
Equity Theory
Equity theory – people strive for fairness and justice
in social exchanges
People will be motivated to the extent their
perceived inputs to outcomes is in balance
A. Compare personal outcomes to inputs.
B. Compare your outcomes to relevant others:
1. Comparisons to teammates or coworkers
2. Comparisons to another group (e.g.
department/unit)
3. Comparisons to others in your field or occupational.
8-17
Equity Theory
A. An Equitable Situation
Other
Self
$2
= $2 per hour
1 hour
$4
= $2 per hour
2 hours
8-18
Equity Theory
B. Negative Inequity
Self
$2
= $2 per hour
1 hour
Other
$3
1 hour
= $3 per hour
8-19
Equity Theory
C. Positive Inequity
Self
$3
= $3 per hour
1 hour
Other
$2
= $1 per hour
1 hours
8-20
Test Your Knowledge
Deena works 60 hours per week and does not feel
that she is being adequately recognized or rewarded.
According to equity theory, Deena is least likely to:
a. Ask for a raise or bonus
b. Reduce her efforts by decreasing her hours
c. Increase her efforts by working longer hours
d. Frame the situation as a learning experience and
beneficial for her future career.
8-21
For Discussion: Assess Yourself –
Equity Sensitivity
Which of the following best describes you? In most
situations, I…
a. put in more than I get out, which is fine with me
b. typically strive for equity and fairness in terms of
my inputs and outcomes (even if I feel positive
inequity)
c. try to put in as little effort as possible to attain
desired rewards
8-22
Equity Sensitivity
Equity Sensitivity an individual’s
tolerance for negative and positive
equity
• Benevolents have a higher tolerance for
negative inequity
• Sensitives adhere to strict norm of reciprocity
• Entitleds have no tolerance for negative inequity
8-23
Organizational Justice
Distributive Justice the
perceived fairness of how
resources and rewards are
distributed
Procedural Justice the
perceived fairness of the
process and procedure used to
make allocation decisions
Interactional Justice
extent to which people feel
fairly treated when procedures
are implemented
8-24
Lessons From Equity Theory & Justice
What important work-related
variables are perceptions of
equity related to?
What are the managerial
implications of equity theory and
organizational justice research?
8-25
Expectancy Theory of Motivation
E-to-P
Expectancy
Outcomes
P-to-O
Instrumentality & Valences
Outcome 1
+ or -
Effort
Performance
Outcome 2
+ or -
Outcome 3
+ or -
8-26
Test Your Knowledge
For each of the following actions, indicate which part
of the expectancy model, specifically, would be
improved for an unmotivated employee?
A. Effort to Performance (Expectancy)
B. Performance to Outcome (Instrumentality)
C. Value of rewards (Valence)
1.
2.
3.
4.
5.
Show direct link between performance and raises.
Set clear goals, establish positive expectations
Base rewards on what the employee values.
Establish a pay for performance plan.
8-27
Provide adequate resources and training.
Implications of Expectancy Theory
8-28
Goal-Setting Theory
Goal what an
individual is
trying to
accomplish
8-29
Locke’s Model of Goal Setting
Directing
one’s attention
Regulating
one’s effort
Goals
motivate the
individual
by...
Task
performance
Increasing
one’s persistence
Encouraging the
development of goalattainment strategies
or action plans
8-30
Guidelines for SMART Goals
Specific
Measurable
Attainable
Results oriented
Time bound
Give feedback regularly!
8-31
Test Your Knowledge
True (A) or False (B)?
1) “Do your best” goals maximize performance
2) Feedback enhances the effect of specific, difficult
goals
3) Participative goals, assigned goals, and self-set goals
are equally effective
4) Goal commitment affects goal-setting outcomes
5) Monetary incentives for goals always improve goalsetting outcomes
8-32
Job Design Approaches to Motivation
Job Design: Changing the content or process
of a specific job to increase job satisfaction
and performance
Motivational strategies:
Job Rotation moving employees from one
specialized job to another
Job Enlargement putting more variety into a job
Job Enrichment building achievement, recognition,
responsibility, and advancement into the work
8-33
The Job Characteristics Model
Core
job
characteristics
Critical
psychological
state
Outcomes
 Skill variety
 Task identity
 Task significance
 Experienced
meaningfulness of
work
 High intrinsic
work motivation
 Autonomy
 Experienced
responsibility for
outcomes of the
work
 High growth
satisfaction
 High general job
satisfaction
 Feedback from
job
 Knowledge of the
actual results of
the work activities
 High work
effectiveness
1.
2.
3.
Moderators
Knowledge and skill
Growth need strength
Context satisfaction
8-34
Applying Job Characteristics Model
Steps for applying the job characteristics model
8-35
Foundations of
Motivation
Supplemental
Slides
Chapter 8
© 2008The McGraw-Hill Companies, Inc. All rights reserved.
Action Planning in Practice
Assume you are a sales person – how can action
planning help you make more sales?
Before you go, be clear about what you’d want to
achieve
Practice your sales pitch, but don’t memorize it; if
you sound like a script you’ll be perceived as
inauthentic
Consider what the customer will say in response to
your sales pitch
Fortune, 9/29/08, pg. 108
8-37
Shareholders Ideas to
Reduce Pay Inequity
Require
executives to
hold equity past
retirement or
termination
Link stock
options to
company’s
performance vs.
peers
Withhold and
adjust part of
annual bonuses
based on longterm results
Pay
Equity
Eliminate “grossups” that cover
executives’ taxes
on perks and
severance
8-38
Tuna, C. Shareholders to Focus on Executive Compensation, Wall Street Journal, 1/12/2009
Pay Equity and Motivation
In what ways would each of those ideas
affect equity perceptions for shareholders?
How would CEO’s equity perceptions
change as a result of these suggestions?
What new behaviors would these
approaches motivate in CEO’s?
Binkley, C. Wall Street Journal, Summer/Fall 2008
8-39
Employee Engagement and
Motivation
Open, Honest Communication
Set a Clear Direction
Promote Stability and Security
Emphasize Career Growth
Recognize and Reward High Performance
Focus on Retention
Source: Bos, J. Building Engagement in an Economic Crisis, Workforce Management, April 20, 2009
8-40
Drives that Underlie Motivation
Acquire
Bond
Drives
Comprehend
Defend
Source: Nohria, N., Groysberg, B., & Lee, L. (2008). Employee Motivation: A powerful new model, Harvard Business
Review.
8-41
Organizational Levers
Culture
Reward System
(Acquire)
(Bond)
Levers
Job Design
(Comprehend)
Performance Management
& Allocation Processes
(Defend)
Source: Nohria, N., Groysberg, B., & Lee, L. (2008). Employee Motivation: A powerful new model, Harvard Business
Review.
8-42
Organizational Levers in Practice
Acquire –
Reward System
Clearly
differentiate
good
performers
from average
and poor
performers
Bond – Culture
Foster mutual
reliance and
friendship among
coworkers
Value
collaboration
and
teamwork
Encourage
sharing of best
practices
Comprehend –
Job Design
Design jobs that
have distinct and
important roles
Design jobs
that are
meaningful and
foster a sense
of contribution
to organization
Defend – PM &
Allocation
Increase
transparency
in process
for granting
rewards and
assignments
Emphasize
fairness
Source: Nohria, N., Groysberg, B., & Lee, L. (2008). Employee Motivation: A powerful new model, Harvard Business Review.
8-43
Questions to Ask Before
Setting Goals (con’t)
Are the goals too specific?
• Narrow goals can blind people to important aspects of a
problem
Are the goals too challenging?
• What will happen if goals are not met?
• How will individual employees and outcomes be evaluated?
• Will failure harm motivation and self efficacy?
Is the time horizon appropriate?
• Short-term goals may harm long-term performance
8-44
Source: Ordonez, L. Schweitzer, M. E., Galinsky, A. D., Bazerman, M. H. Goals gone Wild: The systematic Side effects of overprescribing
goal setting; Academy of Management Perspectives, 23, February, 2009, pg. 6-16
Questions to Ask Before
Setting Goals (con’t)
How might goals influence risk taking?
• Unmet goals may induce risk taking.
How might goals motivate unethical behavior?
• Goals narrow focus. Employees with goals are less likely to recognize
ethical issues, and more likely to rationalize their unethical behavior
Can goals be idiosyncratically tailored for individual
abilities and circumstances while preserving fairness?
• Individual differences may make standardized goals inappropriate, yet
unequal goals may be unfair.
Source: Ordonez, L. Schweitzer, M. E., Galinsky, A. D., Bazerman, M. H. Goals gone Wild: The systematic Side effects of overprescribing
goal setting; Academy of Management Perspectives, 23, February, 2009, pg. 6-16
8-45
Questions to Ask Before
Setting Goals (con’t)
How will goals influence organizational culture?
• Individual goals may harm cooperation and corrode organizational
culture.
Are individuals intrinsically motivated?
• Goal setting can harm intrinsic motivation
What type of goal (performance or learning) is most
appropriate given the ultimate objectives of the organization?
• By focusing on performance goals, employees may fail to search for
better strategies and fail to learn.
Source: Ordonez, L. Schweitzer, M. E., Galinsky, A. D., Bazerman, M. H. Goals gone Wild: The systematic Side effects of overprescribing
goal setting; Academy of Management Perspectives, 23, February, 2009, pg. 6-16
8-46
Job Characteristic Mismatches
Skills and
qualifications
(overqualification
and
underqualification)
Geographic or
spatial location
(home and work
locations)
Inadequate
earnings
Temporality and
time preferences
(overworking an
underworking)
Conflicts between
work and family
lives
Source: Kalleberg, A. L. (2008). The Mismatched Worker: When People Don’t Fit Their Jobs. Academy of Management Perspectives, Vol.
22, pg. 24-40.
8-47
Mismatches and Motivation
What effect might these mismatches
have on motivation?
Which mismatches might cause other
workplace issues besides motivation?
What should organizations do to
prevent mismatches?
Source: Kalleberg, A. L. (2008). The Mismatched Worker: When People Don’t Fit Their Jobs. Academy of Management Perspectives, Vol.
22, pg. 24-40.
8-48
Video Cases
Hot Topic
Motivation Convention
8-49
Management in the Movies
American Pie
In this scene, Heather (Mena Suvari) is talking to Oz
(Chris Klein) about plans after graduation.
Questions
• How do direction, effort, and persistence play into
Heather’s college choice?
• Why does Oz work?
8-50
Management in the Movies
The Terminal – “The Carts”
In this scene, Viktor discovers a way to earn money in
the terminal.
What was Viktor’s motivation to find a way to earn
money?
Why was this opportunity available?
8-51
Rewarding Exempt Employees
The revised FLSA allows companies to pay exempt
employees for extra time worked
Organizations are successful at motivating the right
behaviors when they reward them appropriately
Think outside the box:
• Meals to take home to families after working long hours
• Movie/sporting event tickets
• Gift cards
• Extra time off
Source: Rewarding Exempt Employees, September 2006, HR Magazine, Susan Ladika
8-52
The Snowfly Slots
Companies are using games to motivate employee’s
behavior
For taking actions that are aligned with the
organization’s objectives employees receive tokens
Tokens are used on an on-line slot machine called
“Snowfly”
Employees can win between 2 cents and $50 per game
This strategy has boosted productivity in a variety of
organizations including banks and beverage
distributors
Source: New Incentives for Workers Combine Cash, Fun, J. Badal, Wall Street Journal, 6/19/06
8-53
Getting Rewards Right
Set specific goals and reward achievement quickly;
don’t wait until the end of the year.
Give employees reward choices, to reflect different
tastes
Remind employees about goals and possible rewards
Keep the program fresh; update prices to generate
enthusiasm
Ensure that front-line managers are committed to the
program
Source: New Incentives for Workers Combine Cash, Fun, J. Badal, Wall Street Journal, 6/19/06
8-54
Office Space Movie Clip
Which type of organizational justice (or injustice) is
being displayed in this clip?
Do you agree with the advice of the consultants? Why
or why not?
In the real world, what effect might this approach
have on employees and the organization as a whole?
8-55
Office Space Movie Clip #2
Does Peter believe his effort will lead to better
performance?
Does Peter believe his performance will lead to an
outcome?
Does Peter value the outcomes he’s been receiving?
What impact does the management structure have on
Peter?
8-56
Factors that Drive Engagement
Sr. Management’s interest in employees’ well-being
Challenging work
Decision-making authority.
Evidence that the company is focused on customers.
Career advancement opportunities
Company’s reputation as a good employer
Collaborative work environment
Resources to get the job done
Input on decision making
8-57
Factors that Drive Employee
Commitment
The company’s care and concern for
employees
Fairness at work
Feelings of accomplishment
Day-to-day satisfaction
Appreciation of ideas
8-58
Underlying Propositions of ERG Theory
Need Frustration Desires for Satisfied Needs
1
Existence
Existence
Existence
3
2
4
Relatedness
Relatedness
5
Growth
Growth
6
7
Relatedness
Growth
8-59
Employee Engagement
Employee Engagement at Companies
That Did Respond to September 11
Engaged
Actively
Disengaged
Not Engaged
8-60
Employee Engagement
Employee Engagement at Companies
That Did Not Respond to September 11
Engaged
Actively
Disengaged
Not Engaged
8-61
Employee Engagement
Overall Rating of Company’s Response
Excellent
Actively
Disengaged
Not Engaged
Good
Fair
Engaged
Poor
0%
20%
40%
60%
80%
8-62
Employee Engagement: An Inverse
Relationship
40%
30%
20%
Percentage of
Engaged Workers
10%
Time Spent
with Company
0%
Less
than 6
mos.
6 mos.
to less
than 3
yrs.
3 to less 10 yrs.
than 10 or more
yrs.
8-63
Boosting Productivity
40%
30%
20%
10%
0%
Working without Knowing job has a Having clear, Seeing results of
dealing with
larger purpose work-related goals
effort
workplace
bureacracy
8-64
Sense of Purpose
80%
70%
60%
50%
40%
72%
23%
5%
30%
20%
10%
0%
Work I do is
Half is
very
important,
important or
half is
important busywork
Work is
mostly or
entirely
busywork
8-65
Employee Theft on the Rise
Employee theft at retail
stores: $14.9 billion in
2000
Employee theft
responsible for 46% retail
shrinkage—more than
shoplifters
30 major retail chains
caught 73,300 employees
stealing
Employee theft costs
companies $20 billion to
$40 billion a year
8-66
Flexible Pay Growing in Popularity
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Some form of
variable pay*
Stock options**
'96
'98
'00 Est.
8-67
21st Century Psychological Contracts
A psychological contract refers to the beliefs held
by an individual employee regarding the terms of
the exchange agreement between that employee
and his/her organization.
8-68
21st Century Psychological Contracts Cont.
Survey participants reported
• Which psychological obligations were most
important,
• The extent to which their organization had
fulfilled its obligations,
• Their job satisfaction,
• Their intent to leave the organization,
• Their perceived performance on the job,
• Organizational citizenship behaviors.
8-69
21st Century Psychological Contracts Cont.
The most important psychological contract items
include:
•
•
•
•
•
opportunities for promotion & advancement,
trust & respect,
open & honest communication,
fair treatment,
challenging & interesting work.
8-70
21st Century Psychological Contracts Cont.
Psychological contract items with the greatest
discrepancy include:
•
•
•
•
•
competent management,
open & honest communication,
pay & bonuses tied to performance,
meaningful work,
clear goals & direction.
8-71
21st Century Psychological Contracts Cont.
Relationship between psychological contract
discrepancy scores and dependent measures:
• 21 of 32 contract discrepancy scores were
positively correlated to intentions to leave the
organization,
• 23 of 32 discrepancy scores were negatively
related to job satisfaction,
• 4 of 32 discrepancy scores were negatively
correlated to employee performance,
• 2 of 32 discrepancy scores were negatively
correlated to organizational citizenship behaviors.
8-72
21st Century Psychological Contracts Cont.
Managerial implications:
• Organizations may focus on fulfilling the most
important psychological contract items (based on
the survey information).
• When it has been necessary to make changes in
the psychological contract, employers should
attempt to “renegotiate” the contract to foster
more accurate employee perceptions.
8-73
21st Century Psychological Contracts Cont.
Managerial implications Cont.:
• Fulfillment of psychological contract obligations is
a key way to retain top employees.
• Managers should ensure that employees are
aware of organizational attempts to meet
employee needs and keep organizational
promises.
8-74
A General Model of Expectancy Theory
Outcome 1
High Effort
Performance
Goal
Expectancy:
“What are my
chances of
reaching my
Decision goal if I work
To Exert hard?”
Expectancy:
Effort
“What are my
chances of
reaching my goal
if I slack off?”
Low Effort
Outcome 2
Outcome 3
Instrumentality:
“What are my
chances of getting
various outcomes if
I achieve my goal?
Performance
Goal
Valence: “How
much do I value
these
outcomes?”
Outcome 1
Outcome 2
Outcome 3
8-75
Attractiveness of Achieving a
Performance Goal
Vj = the attractiveness of
achieving a performance goal,
n
Vj =  (VkIjk)
K=1
Where:
Ijk = the instrumentality of
outcome j for the attainment
of outcome k,
Vk = the valence of outcome
k,
n = number of outcomes
8-76
Force to Exert a Level of Effort
Fj = the force to exert a
certain level of effort
F j = (EijVj)
Where:
Eij = the expectancy of
attaining a performance goal
if one exerts a certain level of
effort
Vj = the attractiveness of
reaching the performance
goal
8-77
Expectancy Theory Application
STEP 1. Valence represents the value placed on outcomes.
Calculate the valence for all levels of performance. The
equation is:
Performance Valence = [(Instrumentality1 x Valence1) + (I2 x
V2) + (I3 x V3) + … (In x Vn)]
STEP 2. Calculate the force on an individual to exert
different levels of effort. Force represents the strength of
an individual’s intention to respond in a particular
manner. The equation is:
Force = the sum of [Expectancy x Performance Valence] for
all levels of performance associated with one level of
effort.
STEP 3. Compare force values for each performance level. 8-78
.75
HIGH EFFORT
Work hard for
10 hours a day
PERFORMANCE
Submit 3
manuscripts / year
.90
.70
-.9
EXPECTANCY
.80
OUTCOME 2
Gain respect
& recognition
OUTCOME 3
Spend more time
with spouse
INSTRUMENTALITY
.65
LOW EFFORT
Work hard for
3 hours a day
OUTCOME 1
Publish 2
articles / year
PERFORMANCE
Submit 1
manuscript / year
.80
.95
+5
+2
+3
VALENCE
OUTCOME 1
Publish 1
article / 3 years
+.5
OUTCOME 2
Lose respect
& recognition
-2
OUTCOME 3
Get fired
-6
8-79
Conclusion
Questions for discussion
8-80